BAE buys Weld County Danfoss facility for $30M

WELD COUNTY — BAE Systems Inc. Space & Mission Systems has acquired the Danfoss Power Solutions (US) Co. in Weld County, with plans to add hundreds of jobs.

The company, a Broomfield-based subsidiary of British defense contractor BAE Systems PLC, in early October paid $30 million for the 130,000-square-foot facility at 4120 Specialty Place, according to public records.

The building, located on approximately 13 acres in unincorporated Weld County, will enhance the company’s manufacturing capabilities to meet customer demand and business growth related to space-based hardware and sensor systems, according to a press release from the Colorado Office of Economic Development and International Trade.

“Colorado continues to lead the nation in aerospace and advanced manufacturing, and we are thrilled to welcome BAE Systems’ expansion in Weld County. This investment will bring hundreds of good-paying jobs to Weld County and further solidify our state as a hub for cutting-edge technology and innovation,” Gov. Jared Polis said in a written statement.

BAE Systems expects to hire more than 200 new employees to support production at the new Weld County facility over the next 12 to 24 months. At full capacity, the company estimates that the new facility could provide approximately 600 new jobs, including manufacturing engineers, machinists, manufacturing planners, production supervisors and technicians supply-chain planners.

“BAE Systems’ expansion in Weld County is a testament to Colorado’s highly skilled workforce and collaborative approach to economic development. By fostering a strong business environment and partnering with innovative companies, we are helping to create hundreds of high-paying careers while driving long-term economic growth across the state,” said OEDIT Executive Director Eve Lieberman.

A BAE official credited Weld County and the state of Colorado for facilitating the expansion.

“We look forward to expanding our production capabilities in Colorado with our first facility in Weld County,” Alexis Wang, vice president of operations for BAE Systems, said in a written statement. “The support we received from the Weld County Commissioners and the State of Colorado played a key role in our ability to locate this essential production work for the company in Colorado, extending our manufacturing presence in the state.”

Project Mercury

While June documents from the Colorado Economic Development Commission and the Colorado Office of Economic Development and International Trade indicated that an unnamed company — likely BAE, which established its local presence in 2024 with its $5.5 billion acquisition of Ball Aerospace and Technologies Corp. — was planning to expand in Broomfield, the expansion instead will occur in unincorporated Weld County just east of Longmont.

This summer, the EDC approved incentives for Project Mercury, the mystery company described as “an aerospace, defense, and security company that develops and supports advanced military, space, and intelligence technologies for government customers worldwide.” 

It is the commission’s practice not to identify companies OEDIT is recruiting or supporting for expansion until incentives are accepted.

The EDC approved up to $11,184,835 in a performance-based Job Growth Incentive Tax Credit for the company over an eight-year period. The EDC also approved CHIPS Refundable Tax Credits for the company, which may elect to receive up to $8.6 million of its earned incentives as refundable at 80% of their value. These incentives are contingent upon BAE Systems, referred to as Project Mercury and Project Sodium throughout the OEDIT review process, meeting net new job creation and salary requirements, according to the release.

The company also will receive Opportunity Now Tax Credits to support the purchase of $5.3 million in equipment with a refundable tax credit that covers 50% of the cost. 

“The project represents the company’s search for a location within their Space division to establish a new advanced manufacturing and integration facility supporting national security and space‑based mission programs,” according to a June OEDIT memo. “The project will involve significant capital investment, creation of high‑skilled jobs, and long‑term operational growth to meet increasing demand for mission‑critical defense and space technologies.”

Rich Werner, president and CEO of Upstate Colorado Economic Development, hailed BAE’s entry into Weld County.

“A world-class aerospace and defense company choosing to establish a major facility here is a powerful vote of confidence in our community, our workforce, and the future of our economy,” Werner said in a written statement. “We’re seeing real momentum across aerospace, advanced manufacturing and other high-tech industries, and projects like this don’t just add jobs, they accelerate that momentum. The continued growth in the aerospace and defense industry is putting Weld County on the map for the next generation of innovative companies and create opportunities for our residents to build careers in some of the most exciting industries in the world.”

Danfoss sells Colorado facility

BizWest reported in March that Denmark-based Danfoss had reduced its workforce at the former UQM Technologies Inc. facility and was marketing the property for sale.

The facility, which carries a Longmont address, includes 23,304 square feet of office space and 105,000 square feet of manufacturing/warehouse space. Built in 2001 by Flextronics International Ltd. for production of printed circuit boards, the property sits on almost 13 acres. 

Danfoss acquired UQM — a developer of alternative-energy technologies — in July 2019 through a merger and operated the site as Danfoss Editron.

BAE Systems plans to begin the retrofit process of the Weld County facility and procure equipment throughout the rest of the year and anticipates opening the facility for production in early-2028.

In addition to Colorado, BAE Systems considered Ohio and Texas for expansion. The addition of the Weld County facility expands BAE Systems’ presence in Colorado, with nearby production facilities in Boulder, Broomfield and Westminster. The company currently employs more than 100,000 worldwide, with almost 5,000 in Colorado.

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